Tom Lee's fund analyst: Current opportunity to buy tech stocks on dips, but diversification is necessary.

BlockBeats news, October 18: Mark Newton, an analyst at Tom Lee's fund, said in an interview with CNBC that it is currently suitable to buy tech stocks on dips, but investors need to maintain diversified allocations and prepare for sector rotation.

Cross-asset volatility has increased noticeably over the past month. The S&P 500 has recently pulled back about 6%, and the tech sector has also seen a clear correction over the past week. However, compared with the gains in September, he believes the damage to tech stocks is still relatively limited.

This year, the market has consistently shown sector rotation characteristics. The energy sector initially rose nearly 40%, then the rally spread to the tech sector, and now it has shifted to the healthcare sector, which has hit a record high. Investors need to prepare for sector switches and maintain diversified allocations.

Steve Sosnick, chief strategist at Interactive Brokers, warned that even if investors do not actively allocate to AI, they may still hold relatively high tech exposure through S&P 500 index funds. The market is still dominated by sector rotation, but he is worried about continued declines in tech stocks and investors beginning to question the return on AI investments.